The former head of Terraform Labs turned crypto fugitive, Do Kwon, dipped into a secret stash of bitcoin and pulled over 10,000 coins from his doomed project and turned them into cash, according to a new report from Bloomberg.
Citing an SEC filing from Thursday of this week, the allegations accuse Kwon and his company of causing losses of “at least $40 billion”, the report says. But Kwon and Terraform stashed away 10,000 bitcoin into a cold wallet during Terra’s demise, it is alleged. This means those coins no longer sit on any exchange.
From the cold wallet, the assets are being send to a bank in Switzerland that is helping Kwon convert them into cash. The banking institution was not identified in the filing.
The filing reads: “Between June 2022 and the date of this complaint, over $100 million in fiat currency has been withdrawn from that Swiss bank.”
Recall, late last year we noted that Seoul was seeking the help of Interpol to try and locate Kwon. “Prosecutors on Monday have made a request to Interpol for their assistance to locate Kwon, whose whereabouts remain unknown, and to have him handed over to Korea,” the agency said back in September.